Decision on Transfer Pricing Materials used by the Instrument Division of T Kong Industries are currently purchased from outside suppliers at a cost of $408 per unit. However, the same materials are available from the Components Division. The Components Division has unused capacity and can produce the materials needed by the Instrument Division at a variable cost of $339 per unit. a. If a transfer price of $371 per unit is established and 22,000 units of materials are transferred, with no reduction in the Components Division's current sales, how much would T Kong Industries' total income from operations increase? b. How much would the Instrument Division's income from operations increase? How much would the Components Division's income from operations increase?